Drew Gurley, Founder of Redbird Advisors and EVP of Growth for Senior Market Advisors, a Medicare FMO.
Older Americans may feel like they’re navigating a financial minefield. Healthcare costs are skyrocketing, savings are stretched thin, and unforeseen emergencies can threaten hard-earned stability. These risks can seem overwhelming, but they don’t have to be.
When licensed agents adopt a value-based care mindset, they can transform these challenges into opportunities to build trust, offer solutions and make a lasting impact. This mindset requires teams in the field to not only educate their clients about risks but to also empower them with tailored solutions.
Let’s explore the four primary financial risks older adults often face.
1. Conquering Healthcare Costs: A Growing Challenge
Healthcare expenses often top the list of financial concerns for older adults. Close to 95% of older Americans manage at least one chronic condition, and ongoing treatments, medications and routine doctor visits can quickly add up. For those living on fixed incomes, even minor medical bills can become unmanageable, especially when you consider that over 10 million Americans rely on their Social Security check for more than 90% of their income.
The Solution: Licensed insurance agents must step into the role of educators, breaking down the complexities of supplemental health plans and ancillary products. Options like Medicare supplements and accident insurance can help make sure older adults aren’t blindsided by unexpected out-of-pocket costs.
Critical illness insurance can add another layer of security, providing a financial cushion during serious, unexpected health events. Bundling these policies simplifies the process and saves clients money while addressing multiple risks simultaneously. Framing these conversations around a client’s specific needs highlights how these products can directly alleviate their biggest financial concerns.
The goal is not to sell bundled policies to 100% of your customers. The goal is presenting the right bundled solutions to 100% of the people you meet with, guaranteeing you are educating based on value in every interaction.
2. Preparing For Unexpected Medical Bills And Hospitalization
A sudden hospital stay or critical illness can devastate a retiree’s finances. Even with robust health insurance, hospitalization often comes with hidden costs—from out-of-network fees to follow-up care and rehabilitation. For someone on a fixed income, these expenses can feel insurmountable.
The Solution: Hospital indemnity (HI) plans offer a direct way to address these gaps. These policies provide lump-sum payouts to help cover hospitalization costs, offering clients much-needed financial breathing room during emergencies. Agents can also introduce bundled products that combine HI with other forms of coverage. For instance, pairing HI coverage with short-term care (STC) benefits addresses multiple risks while offering flexibility.
When discussing these options, licensed agents can present relatable scenarios: “Imagine an unexpected hospital stay that is coded as observation instead of inpatient, and now your plan doesn’t cover short-term therapy. Wouldn’t it be reassuring to have a plan that fills in the gaps Medicare doesn’t?” This approach makes the value of these solutions crystal clear.
The hospital coding issue of inpatient versus observation is a growing problem, and those who bear the burden are the beneficiaries who are sleeping in a hospital bed but have no idea they aren’t considered inpatients. This is exactly the value and education that must be front and center.
3. Ensuring Retirement Savings Last A Lifetime
Running out of money during retirement is one of the most pervasive fears among retirees. With life expectancies increasing and economic conditions in flux, Social Security benefits and modest savings often prove insufficient to sustain a comfortable lifestyle.
The Solution: Annuities may be able to provide a reliable solution. By offering guaranteed income for life (keeping in mind that guarantees are backed by the financial strength and claims-paying ability of the issuing insurance carrier), annuities eliminate the guesswork surrounding retirement income planning. Hybrid annuities, which combine income guarantees with additional benefits like legacy planning or long-term care (LTC) insurance provisions, can deliver even greater value.
Licensed agents should guide clients through these options, exploring how such annuities may align with their goals. Statements like, “If you’re worried about outliving your savings, let’s explore how an annuity can provide steady income for life,” can help address their immediate concerns. Highlighting family benefits may enhance the additional appeal of these products.
The key here is leveraging insurance products that can mitigate multiple areas of financial risk.
4. Unlocking The Full Potential Of Life Insurance
Life insurance is often seen as a tool for covering final expenses, but its potential stretches far beyond that. Modern life insurance products can shield families from debt, provide liquidity during emergencies and even support policyholders during their lifetimes through living benefits.
The Solution: Licensed agents should spotlight the versatility of today’s life insurance policies. Living benefits, for example, let policyholders access funds to cover chronic illness or LTC insurance needs. When appropriate, suggesting a transition from outdated term policies to more flexible options tailored to evolving client needs can be transformative.
For instance, replacing a term policy with a living benefits policy that reduces the death benefit but adds liquidity for emergencies reframes life insurance as a proactive financial tool. This approach shows how life insurance isn’t just about end-of-life planning—it’s about living with confidence.
Value-Based Care: Our Driving Principle
At the core of every effective risk management strategy is a value-based care mindset. This approach emphasizes understanding each client’s unique concerns and tailoring solutions to meet their needs. Moving beyond transactional sales, it’s about fostering lasting relationships rooted in trust.
Consider This: A licensed agent meets with a client worried about healthcare costs. Instead of presenting a laundry list of products, the agent asks thoughtful questions to uncover the client’s fears and priorities. They then explain how a combination of a Medicare Advantage plan and a hospital indemnity plan could provide comprehensive protection. By aligning solutions with specific needs, the agent demonstrates expertise and empathy—key hallmarks of value-based care.
Broadening The Impact: A Collective Effort
When licensed agents embrace this mindset, their impact extends far beyond individual clients. They contribute to more financially secure communities, reducing reliance on social safety nets and empowering older Americans to live with greater confidence.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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